Loan and Mortgage Payment Calculator
Find the monthly payment on a loan or mortgage, and what it costs in total.
Good to know. A longer term lowers the monthly payment and raises the total. Both at once.
Not financial advice. Uses only the numbers and rates you enter — no live data.
How it works
In plain words
A standard repayment loan has the same payment every month. Early on, most of it is interest; later, most of it pays down the loan. The formula finds the one payment that clears the loan exactly on time.
The formula
M = P × i ÷ (1 − (1 + i)^−n) where i = annual rate ÷ 12 and n = number of months
Worked example
A 200,000 mortgage at 6% over 30 years: i = 0.005, n = 360, so the monthly payment is 1,199.10. Over the full term you repay about 431,676, of which 231,676 is interest.
Sources
- Brealey, Myers and Allen, Principles of Corporate Finance, chapter 2 The standard formulas for loan payments, compounding and present value, the same as a spreadsheet’s PMT and FV.
Sources checked September 29, 2026. 6 automated tests check its answers on every change.
About the loan and mortgage payment calculator
Most mortgages, car loans and personal loans are repayment (amortising) loans. You pay the same amount every month, and each payment covers that month’s interest plus a slice of the loan. Because the balance shrinks, the interest part shrinks too, and more of each payment goes to the loan itself.
The total interest is often the eye-opener. On a long mortgage, you can easily pay back more in interest than you borrowed. Two levers change this: the rate and the term. A shorter term means higher monthly payments but far less interest overall. Even a small rate difference adds up over 25 or 30 years.
This calculator assumes a fixed rate for the whole term, monthly payments and no fees. Many real mortgages have an introductory rate that changes after a few years, and lenders may add arrangement fees, insurance or property taxes to the monthly bill. In the US, the payment you see here is principal and interest only.
To see how each payment splits between interest and principal over time, use the amortization schedule calculator.
Questions people ask
How is a monthly loan payment calculated?
With the formula M = P·i ÷ (1 − (1+i)^−n), where P is the loan, i the monthly rate (annual rate ÷ 12) and n the number of months.
What is the payment on a 200,000 mortgage at 6% over 30 years?
About 1,199.10 a month, not including taxes, insurance or fees.
Is a shorter loan term better?
You pay much less interest overall, but each monthly payment is higher. Choose a payment you can comfortably afford.
Does this include property tax and insurance?
No. It covers principal and interest only. Add those costs separately.